Adani Group Gets CCI Nod To Buy Debt-Ridden Jaiprakash Associates

Fair trade regulator CCI on Tuesday said it has in principle approved Adani Group's acquisition of debt-ridden Jaiprakash Associates, should it win a bid in the ongoing insolvency proceeding.

The proposed combination relates to the acquisition of up to 100 per cent shareholding of Jaiprakash Associates Ltd by Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd or any other entity forming part of Adani Group, according to a release issued by the regulator on Tuesday.

The Competition Commission of India said it has approved the acquisition of JAL by Adani Group entities.

Following a recent ruling by the Supreme Court related to interpreting provisions of the Insolvency and Bankruptcy Code, an approval from the competition watchdog is mandatory for submission of a resolution plan by the entity concerned.

The entity has to get the CCI nod before the resolution plan is voted upon by the Committee of Creditors of the company undergoing the resolution process under the IBC.

The CoC of Jaiprakash Associates Ltd is still reviewing the resolution plans received, and the voting will happen in due course.

Apart from Adani Group, Dalmia Bharat's proposal for JAL has been cleared by the regulator.

Various other companies, including Vedanta Group, Jindal Power and PNC Infratech, have also approached the CCI seeking nod to submit respective resolution plans to the CoC of JAL.

JAL was admitted into the corporate insolvency resolution process through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024. It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

Creditors are claiming a staggering Rs 57,185 crore.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India.

JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.

It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra.

JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.

It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.

Jaypee Group's Jaypee Infratech has already been acquired by Mumbai-based Suraksha Group through an insolvency process.

Suraksha Group has to complete various stalled projects comprising around 20,000 apartments in Noida and Greater Noida.

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